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EU Trade Chief to visit Mexico and Peru to foster trade ties

On a visit to Latin America next week, EU Trade Commissioner Karel De Gucht will travel to Mexico. The Commissioner will then head on to Peru to promote the swift ratification of the trade agreement signed by the EU, Peru and Colombia in June 2012.

"The EU's bilateral trade with Mexico has doubled since the entry into force of our trade deal in 2000. I look forward to a further improvement of this very positive trend", said Commissioner De Gucht. "For Peru, I welcome Lima's continued efforts to improve social and environmental rights which remain key factors for the European Parliament's future approval of the trade deal with Peru and Colombia, hopefully by the end of this year. We should expect to see the benefits of deeper economic integration on the ground materialise soon after. I also warmly encourage Peruvian partners to complete their own procedures as swiftly as possible."

In Mexico (12-14 November), Commissioner De Gucht will meet Mr Enrique Peña-Nieto, President-elect of Mexico, who will take office on 1 December. The meeting will take place in the context of the 10th edition of the Queretaro Business Forum, a privately-organised business event in Mexico and in the wider Latin American region that sees the participation of experts, business and political leaders. A meeting is also foreseen with Mr Bruno Ferrari, the incumbent minister for economy, trade and industry.

In Peru (15-16 November), the Commissioner will meet the Minister for Foreign Trade and Tourism Mr Luis José Silva Martinot. The meeting takes place at an important juncture of the imminent entry into force of the trade agreement concluded between the EU, Peru and Colombia.

Background

The EU and Mexico adopted a comprehensive Free Trade Agreement that entered into force in October 2000, laying the ground for the flourishing bilateral trade relations. Since its entry into force in 2000, total bilateral trade has grown by 187%, nearly doubling the initial value and passing from €21.7 bn in 2000 to €40.1 bn in 2011.

The Trade Agreement with Peru and Colombia was signed on 26 June 2012 in Brussels. The agreement provides for a new, stable, predictable and enforceable trading framework, thereby opening up new trade opportunities on all sides. It's expected that, once fully implemented, the deal will result in total tariff saving of more than €500 mio per year. On the EU side the procedure allowing for a provisional application of the agreement could be finalised by January 2013. The European Parliament is scheduled to vote on the agreement during its plenary session in December.

EU- Mexico Trade in facts and figures

In 2010, the EU was Mexico’s 3rd most important trade partner (after the US and China) and the 2nd source of foreign direct investment.

In 2011, EU exports of goods to Mexico amounted to €23.8 bn, whereas EU imports from Mexico in 2011 were at €16.3 bn.

In 2010, exports of services amounted to €5.1 bn and imports to € 3.1 bn. The EU provides 29% of the total of Mexico's trade in services.

The EU's investment stock in Mexico is worth €81 bn (2010 figures) making it the second biggest destination for EU investment in Latin America. Between 2000 and 2010, Mexican companies invested €8.7 bn in the EU.

EU-Mexico trade has increased sharply since the conclusion of a Free Trade Agreement in 2010. EU exports of goods to Mexico have for example increased by more than 60% between 2000 and 2010 while imports from Mexico nearly doubled during the same period.

EU-Peru Trade in facts and figures

The EU is Peru's 3rd largest source of imports, after the United States and China. In 2011, imports from the EU (€2.8 bn) accounted for 12% of Peru's total imports.

The EU is the first export market for Peru, with Peru's exports to the EU (€6.4 bn) accounting for 18% of its total exports in 2011. Total trade in goods is €9.2 bn.

In terms of FDI, the EU is the principal investor in Peru, representing more than 50% of the total FDI stock. The total foreign investment in Peru reached US$22 bn in 2011 (+2% than in 2010).